Made in Malaysia: Bright Days Ahead for Petrochemicals
Paying tribute to the country’s petrochemical capabilities
The spotlight shines on Malaysia this year as it once again takes centre stage to host the Asia Petrochemical Industry Conference (APIC) 2018, set to take place on 20th and 21st August 2018 at the Kuala Lumpur Convention Centre. Carrying the theme, ‘Creating Value Through Collaboration’, this longstanding event of 39 years will gather thought leaders and key industry experts to strategically chart the future of the petrochemical industry.
Having APIC 2018, in Kuala Lumpur is timely as Malaysia is no stranger to the petrochemical industry landscape. Since the 1990s, the petrochemical industry in Malaysia began to grow progressively. The catalyst for the growth included feedstock availability and resources, well developed infrastructure, supportive government policies and conducive business environment. With the early development of PETRONAS’ three major petrochemical facilities strategically located in Bintulu, Gebeng and Kertih as well as other facilities located in Labuan and Gurun, Malaysia has grown to become among the key petrochemical players in the region with a wide range of exports such as olefins, aromatics, ethylene oxides and glycols, among many others.
The latest addition in expanding Malaysia’s competencies in the petrochemical industry is the Pengerang Integrated Complex (PIC), PETRONAS’ largest downstream project, which is on track for overall start-up by early 2019. Designed to process up to 300,000 barrels of crude oil per day, PIC will possess the capabilities to produce premium differentiated chemicals, tailored and customised to meet the consumer market demand. This strong move by PETRONAS is expected to propel the downstream sector of Malaysia’s oil and gas industry into a new frontier of technology and economic development. During the construction period, PIC employed up to 60,000 workers and created spin-off economic activities for its surrounding areas. Its close proximity to the region’s busiest shipping lane and international trading hub makes it the most strategic regional downstream investment thus far.
The provision of a conducive ecosystem has been instrumental in propelling the country’s petrochemical industry. This includes the development of infrastructures and offering of incentives to attract foreign investment and boost local manufacturing activities.
Asia is expected to bloom in the midst of exciting opportunities presented by rapid urbanisation, growing population and higher purchasing power. These bright prospects for Asia will ultimately fuel the performance of the regional petrochemical industry as it gears up to meet the rise in consumer demand.